Clip Company bought $6,500 of merchandise from Tarpon Corporation,terms 2/15,n/45.The journal entry to record the payment under the gross method approach after the discount period would be to:

Question

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Under the gross method, the full invoice amount is recorded initially. Since the payment is made after the discount period, no discount is taken, and the full amount of $6,500 is paid.

Clip Company Bought $6,500 of Merchandise from Tarpon Corporation,terms 2/15,n/45